AI's Impact on Labor Markets and Employment

At the CERAWeek 2025 Innovation Agora, Irving Institute Faculty Director, Geoff Parker, participated in a discussion that explored the impacts of artificial intelligence (AI) on labor markets and employment. Other panelists included Chris Cantarella, Senior Client Partner at Korn Ferry, and Hector Rocha, Global Gen AI Leader for Energy at Accenture. Moderated by S&P Global's Natznet Tesfay, the discussion delved into how rapidly evolving AI technologies are reshaping the workplace, and the necessary transformations companies must undertake to adapt effectively. The panelists likened the current landscape to the shifts witnessed during past industrial changes, emphasizing that we are at a pivotal moment where AI's advantages could outstrip historical precedents.

Chris Cantarella highlighted the immediate need to adopt new ways of working to realize the value of AI technologies. He pointed out that traditional business silos are dissolving, as organizations increasingly seek cross-functional integration. This shift underscores the importance of amplifying human intelligence alongside AI—a process that will require companies to rethink their approaches to training and collaboration. Cantarella also acknowledged the past mistakes in business process reengineering, arguing for a greater emphasis on understanding people and their roles within the evolving AI framework, rather than fixating solely on the technology itself.

Geoff Parker emphasized that the challenge lies not only in deploying AI effectively but also in ensuring it is aligned with real organizational needs. He cautioned against making substantial investments without clear objectives and a solid understanding of the internal data landscape. Parker urged leaders to focus initially on identifying the problems they seek to solve, fostering a culture of open communication, and aligning costs and benefits before attempting to share data externally. He also noted that this new era of AI will fundamentally reshape value creation mechanisms, necessitating that organizations adapt by retraining and redeploying talent effectively.

Hector Rocha added that the evolution of company culture is integral to embracing AI. He suggested that organizations will need to become flatter and more functionally integrated to leverage AI effectively, fostering collaboration between human teams and digital agents. As the pace of technological change accelerates, Rocha stressed that C-level executives must sponsor and lead the charge toward continuous reinvention, equipping their employees with the meta skills required to thrive in an AI-driven environment.

The discussion concluded with a consensus that the generative capabilities of AI will significantly influence job markets, differing from past technological disruptions that eliminated roles without creating new ones. Cantarella forewarned that the stakes are high; companies should be prepared to navigate the complexities of AI implementation thoughtfully. As the conversation wrapped up, the panelists agreed that embracing AI requires not just the willingness to adopt new tools but also a commitment to cultivating a culture of creativity, vulnerability, and trust within teams. With the right strategies in place, organizations can harness the potential of AI to enhance productivity and foster innovative job roles that we have yet to imagine.

CERAWeek is regarded as one of the most influential annual conferences in the energy sector, drawing nearly 10,000 executives, policymakers, investors, entrepreneurs, and scientists from around the globe. Attendees engaged in a week filled with hundreds of discussions, covering topics such as domestic energy production, the influence of AI on energy systems, the rapid deployment of solar energy, the evolving policy landscape, and pioneering carbon capture technologies.

The Irving Institute brought 25 delegates who actively networked with industry leaders and exchanged ideas. Our faculty, staff, and affiliated startups delivered over two dozen presentations throughout the week.

Read about Dartmouth's engagement at CERAWeek 2025.

Read more about Professor Geoff Parker's CERAWeek panel discussions:

• Science, Innovation, & Public Policy: Solving for a Sustainable Future
• The Essential Role of Industrial-Academic Collaborations